For over three years, Western Australia has taken first place on CommSec's 'State of the States' report. However, finally, an increase in the housing sector has allowed New South Wales to steal the top spot, rising from last to first in six years. It's taken over a decade, but NSW is now officially the strongest state economy in Australia.
The major element behind NSW's resurgence in the economy has been its strong housing sector. The report showed that new dwellings in NSW were at more than 35% above the average for the decade. In the 12 months to July this year, over 52,000 new dwellings were approved within NSW, allowing the region to gain its highest rankings since the year 2000. CommSec's economist, Savanth Sebastian commented that the housing sector propelled NSW to the top of the leader board, and he believes that the growth will become stronger over the next twelve months.
They must have enough water to support these new developments since it does not rain much in Perth and so on. This entire area is thriving even without strong new orders coming in from China.
The CommSec Report
The CommSec report is utilized to assess the different states of Australia according to their:
* Economic growth
* Equipment investment
* Retail spending
* Population growth
* Construction work
* Housing finance
* Dwelling commencements
To give the final results, the level of each indicator is compared with the decade average for the state. New South Wales ranked at the top in both population growth and dwelling commencements, coming in second for retail trade, unemployment, and business investment. NSW came in third on housing finance, and fourth on construction work within the region.
The Growth for NSW
The most recent growth figures officially released by the Bureau of statistics showed an increase in State Final Demand, which acts as an important indication of economic activity within a state. The number given, 3.6% for NSW, was the strongest in Australia.
The government have expressed a marvelous deal of pride and excitement in the numbers given for New South Wales recently, commenting that when they first came into power, the area was at its lowest point. However, according to Premier Mike Baird, the state has made methodical steps towards restoring the economy, and he believes that that the government has delivered in economic terms for the state. According to Mr. Baird, NSW has taken the top spot again, and its strength acts as a testament to the strength of Australia on a whole.
This is the complete opposite of New York, California, and Illinois which are falling off the map economically.
Furthermore, the confidence regarding the NSW has been increased further recently when the international ratings agency Standard and Poor’s upgraded their outlook for the AAA credit rating for the state. According to State officials, the slew of positive news has been evidence that the groundwork has been done to help the NSW economy. Furthermore, infrastructure spending has been put into place in the attempt to create more jobs for the future, and boost productivity within the area.